One of the major talking points often seen in financial news is the amount of debt held by the average Canadian. When the debt levels of an average Canadian household increases from just 60% in the 1980s to over 150% in 2011 according to Statistics Canada, it’s no wonder that there is a lot of fear and uncertainty when it comes to borrowing money or using credit.
In a previous article, we briefly discussed debt and some steps to take in order to help you manage that debt. If you haven’t read it yet, take a look here! One point that we brought up is that debt is not necessarily good or bad, because it all depends on how you choose to use it. For example, it’s perfectly acceptable for people to have mortgages and car loans, which are both forms of debt. The trouble comes when debt usage becomes a bit too… cavalier, and you end up with too much borrowed money across too many lenders. That’s when it becomes troublesome.
One solution to this is debt consolidation. Are you familiar with it? It’s the concept of combining all your loans into one loan. This can offer several advantages for you:
For someone who is currently carrying multiple forms of debt, using a debt consolidation program is definitely a great strategy to keep in mind. We recommend you check out the program here to find out if it’s the right strategy for you!
Finjoy Capital is not a financial advisory firm.
This article is for informational purposes only and is not a substitute for individualized professional advice.